MSLO’s and Kmart’s agreement continues through January 2010 “and remains a strong component of our business,” Lyne said, understating the power of what is still a strong contributor to Kmart’s merchandising revenue flow.

“We’ve been getting guarantees from Kmart for our licensing business,” she went on to say. “They ramped over time to about $65 million this year. They [the guarantees] go down to $20 million next year, or royalties based on goods sold – whichever is highest. That [approximately $45 million] gap is what we have been looking to close with all of these new merchandising partnerships.”

Walking analysts through a tour of MSLO merchandising exclusives with Lowe’s, Costco and other retailers, she said it is “very important to us to diversify our product lines and our channels of distribution – this is really the future for the company.”

Sales figures stemming from September launch of the “most significant” new program, the Martha Stewart Collection of 2,000 home-related skus at Macy’s, have not been made available yet by either company. But early indicators, Lyne said, are “very, very encouraging. It’s been a fantastic launch.”

CURRENT ISSUE

See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more...See details!